Fund that primarily holds bonds and other fixed-income instruments, giving investors pooled exposure to credit, duration, and yield.
A bond fund is an investment fund that primarily holds bonds and other fixed-income securities instead of concentrating on stocks.
It gives investors pooled access to fixed-income markets, which can be useful when buying and managing many individual bonds directly would be impractical.
A bond fund may diversify across:
Unlike an individual bond, the fund usually has no single maturity date. The holdings change over time as the manager buys, sells, and reinvests.
Bond funds are often used for income, diversification, and duration exposure. But investors still need to understand rate sensitivity, credit risk, and how the manager’s strategy affects the portfolio.